1

CAGP Toronto Roundtable – October 18, 2007

Ethical Fundraising in the Age of Accountability

Dianne Lister, LL.B., CFRE

Vice President

External Relations + Advancement

Trent University

2

Workshop Agenda

1. Today’s climate

2. Fundraising as a profession

3. AFP Code of Ethics/compliance process

4. Key issues – • commission-based fundraising• Undue influence• Appearance of impropriety

5. Q &A and Wrap

3

Today’s Climate

• Off-loading of services from government to NFP sector

• Societal needs growing

• Insufficient resources/core funding

• Increased competition for private $$

• New and innovative social enterprises

• Fiduciary and ethical responsibilities

4

The Three “S’s”

Scandal ►scrutiny + scepticism

• Public trust issues• Self-regulation vs. government regulation• Investigative reporting• Heightened accountability• Need for transparency • Multiple stakeholders

5

Quotable Quote

“Once integrity goes the rest

is a piece of cake”

J.R. Ewing(Larry Hagman)

From 1978 CBS hit series, Dallas

6

Fundraising as a Profession

• Three “C’s” for the Profession

– Curriculum, Credential and Code

• NSFR -- June 21, 1960

– Code of Ethics and Representation of the Fundraising Profession

7

AFP Code of Ethics

• Oldest enforced code of ethics in fundraising profession (47 years old)

• 28,000 members worldwide

• 3,000 members in Canada

• Principles adopted by Imagine Canada

• Expanded to include business members

• AFP led initiative for International Code

8

• Goal is education, not sanctions

• Assist professional fundraisers with workplace principles and standards

• Avoidance of government regulation

• Uphold public trust

• Provide assurance to donors

Goal of the Code

9

• Educate members, other professionals, and the public about the Code and Standards

• Encourage compliance with the Code

• Receive and respond to queries and complaints concerning the code and practices within the profession and the sector

Role of AFP Ethics Committee

10

• Maintain confidentiality about queries, complaints, and hearings

• Effect resolution through education and persuasion whenever possible

• Provide fair and responsible hearing—due process—to both complainant and individual alleged to be in violation of the Code

Role of AFP Ethics Committee

11

• Render judgment based on facts presented • Apply sanctions fairly and consistently based on

enforcement processes• Function as resource to AFP and its members, and

to the public in matters of ethical behavior• Develop and recommend standards that address

evolving issues affecting ethics within the field

Role of AFP Ethics Committee

12

Enforcement Process

• Anyone (member or nonmember) may lodge an ethics query for guidance about a proposed practice, transaction, or behavior relating to the Code

• Anyone may file a complaint alleging possible violation of the Code; Ethics Committee may also act as complainant

• Alleged violator must be a member of AFP • Complainant must agree to cooperate during the

enforcement process

13

Enforcement Sanctions

• Reprimand—formal written “rebuke”

• Censure— “a more serious [written] rebuke” including a prohibition on holding any AFP office (chapter or association) for one year

• Suspension—exclusion from membership for a stated period which may include specified conditions

14

Enforcement Sanctions

• Revocation of membership—permanent expulsion from AFP and revocation of AFP-sponsored certification; includes written notification to all AFP members and publication in Advancing Philanthropy and Chronicle of Philanthropy

15

Key Issues

What is the relationship among:

• Undue Influence

• Commission-based fundraising

• Appearance of Impropriety

16

Ethical Aspects of Fund Raising

• Standard # 4– Members shall not exploit any relationship

with a donor, prospect, volunteer, or employee for the benefit of the member or the member’s organization

17

Ethical Aspects of Fund Raising

• Standard # 4: Unethical Behavior– Influencing a donor or prospect so that the

member may personally benefit– Manipulating a donor or prospect who is

vulnerable because of age, handicap, illness or emotional or physical impairment or dependence so as to benefit you or your organization

18

Ethical Aspects of Fund Raising

• Standard # 16– Members shall not accept compensation that

is based on a percentage of charitable contributions; nor shall they accept finder’s fees.

19

Ethical Aspects of Fund Raising

• Standard # 16: Unethical Behavior– Accepting percentage-based

compensation because an organization lacks sufficient budget, with the expectation that such will be converted to salary or fee when funds are available

– Accepting a compensation package in which a part is salary or fee and the balance is made up of a percentage of the funds raised.

20

The Appearance of Impropriety

Definitions of Impropriety:

immodesty, indecency, rudeness, incongruity, vulgarity, impudence, unseemliness, incorrectness, erroneous or unsuitable expression or act

21

The Appearance of Impropriety

• What is the “appearance” of impropriety and how is it linked to ethical fundraising?

• Clues in the Code

22

How to Practice Ethical Fundraising

• Read the Code carefully and use it to help guide workplace and professional practices

• Use AFP/other codes + resources as training materials for PD workshops (case studies)

• Utilize AFP web and query services

• Other resources – EPAC; books

23

How to Practice Ethical Fundraising

• Adopt Donor Bill of Rights/IC Code at

Board level

• Screen suppliers against new business member Code

• Remember ► uphold public trust and protect your personal and institutional reputations

24

Wrap and Questions

Thank you!

Dianne Lister

705-748-1011